jsw steel share price: JSW Steel shares jump 4% as Macquarie upgrades stock to overweight, hikes target price to Rs 1,077

JSW Steel shares surged 4% to its day’s high of Rs 984.40 on BSE after the global brokerage firm Macquarie upgraded its rating to overweight and with a target price of Rs 1,077, citing a positive outlook for India’s metals sector.

In addition to upgrading JSW Steel’s rating to outperform, Macquarie has also raised the target price of the stock from an earlier Rs 884, reflecting an upside potential of over 13% from its closing price on Thursday.

Macquarie stated that it is positive on the resilient domestic fundamentals and moderating input costs of the metal sectors as the commodities’ price outlook factors in the upside risks over the next 6-12 months.

“Steel companies look set to benefit from domestic price premium to import parity, steady leverage and easing input costs,” said the global brokerage firm in its note.

The foreign brokerage firm also believes that the steel stock multiples should be seen in the context of improved ROE profiles and steady leverage.

Macquarie has issued an optimistic outlook on metal stocks while hiking the target prices for other companies like Coal India, Jindal Steel & Power, and Tata Steel.Also read: Vodafone Idea shares tumble 24% in 2 days, slip below Rs 10 mark

Additionally, the company, via a filing to the exchanges, also informed on Thursday that JSW Steel USA has achieved its energy savings goal in the U.S. Department of Energy’s (DOE) Better Plants Challenge.

The shares of JSW Steel have increased by 25% in the last one year, while in the current year so far, they have gained 12%.

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